At its lowest point on Wednesday, bitcoin was nearly $1,250 off the all-time high of 5,013.91 hit on Sept. 2. Bitcoin's total market capitalization or value has fallen by more than $15.5 billion in this time, from $82.28 billion on Sept. 2 to $66.74 billion on Wednesday, according to CoinMarketCap data.

Investors have also been jittery in the past few days mainly because of numerous media reports suggesting that Chinese authorities are looking to shut down some bitcoin exchanges. These are platforms where bitcoin is traded.

Another report by news outlet Caixin earlier this month said Chinese authorities were looking to ban projects that looked to raise money through cryptocurrencies. These so-called initial coin offerings have exploded in recent months.

It's not just Chinese regulators taking a closer look at bitcoin. On Wednesday, India's central bank said it had been looking into cryptocurrencies as legal tender. However, Sudarshan Sen, an executive director at the Reserve Bank of India, said the institution was "not comfortable" with non-fiat cryptocurrencies, in comments reported by Reuters.